Extended service plan?? Worth it??

[Buckmark]

Yes i should have been more specific, factory extended warranties cover 100%, less a deductable if there is one. The sales tax i was refering to is levied on parts/labor etc not covered on some contracts, the one mentioned by the OP is by his account a factory contract....
Jackelope has alot of experience with these companies because the cars they sell always break down...
**Just kidding ** kinda.
One thing as an fyi to anyone that has a contract or is thinking of purchasing one, follow the manufactures recommeded service intervals to a T and keep good, detailed organized records of maintinance (receipts, not just journal saying something was done) you can do all services yourself just make sure to keep parts receipts. Nothing worse than having an engine fail and not having any LOF records,,, the warranty companies count on people not doing the maintinace and or having records...

[Bean Counter]

I'm not one for service contracts, be it for a microwave, a computer, a tv or a truck. Sounds like Jack has some good advice though. In the case of automobiles, I just buy Japanese 

[twistiron]

well since you have a post 7.3L powerstroke i doubt it will still be running when you exceed factory  warranty! i am just bashing! in all honesty how long do you plan to keep this truck? are you planning on modding or upgrading the truck? i believe only the original manufatures warrenty is covered under magnuson moss warranty act (allowing you to mod and still be covered ). my  would be forget it put the money in the bank should pay for the head gaskets or egr system down the road.  good luck i hope you got a good one.

[jackelope]

The way people get their money back on them is when a motor or transmission goes south.

Engine.. More than $ you want to know. Transmission... I priced a 'replacement' tranny when I thought about an extended service plan.. About the same price as the contract.  Differentials.. I can rebuild them myself.

Computer... Now there's something to think about.... Just the diag is a spendy option. Wiring and electrics.. you're gambling on that one.

Anything else is handled by me. The rest by insurance, because if she's goin south in a hurry, I'm gonna start leaving it over night at the boat launch!   

-Steve

Just did a replacement reman trans in a 2003 Grand Cherokee... $3800+tax.

Diag for a Check Engine light in the high rent district of Bellevue is $125.00. A new PCM in a Grand Cherokee will cost about $900 or so but it's covered under the Federl Emissions Standards warranty for 8 years or 80k miles by every manufacturer. It's a federal must. You can't charge anyone to replace it, reprogram it, etc. if it's under 8/80.

Most water pumps now adays will cost with labor close to $500.00.

It doesn't take long to recoop the $2k you spend on a service contract, especially if you're driving a full size domestic truck. I don't care what brand it is.

Jackelope has alot of experience with these companies because the cars they sell always break down...
**Just kidding ** kinda.

You don't have to be kidding.
I don't know why a service advisor who is paid full commission pay would ever want to work at a Toyota dealer.
 

Sounds like Jack has some good advice though.

I'm a lot better with this kind of stuff than I am with the mechanics.

Fortunately a lot of guys on this kind of site tend to be mechanically inclined and some even enjoy working on their cars and trucks. Thats great. We like to sell parts too. For those who don't work on cars or don't have the time or the space or whatever...service contracts can be good.

[Bofire]

 :)Consumer report says do not buy. Rarely do the covered repairs cost what the warranty does.
Carl

[TheHunt]

Build a spreadsheet on your consumption and estimations like others have said.

I do not buy them unless I get a smok'en deal.  I have had only two.  One was for the wife's Lexus and a Toyota pickup in 1985.  The Toyota was fantastic because it was a 10 year unlimited milage warrentee. I sold that truck with 377,000 miles on it. 

[pianoman9701]

extended warranties or service plans are rarely a good deal on anything. They sell them with fear and almost always reap the entire cost to you. Take that same money and put it into a CD or even a stock. Chances are, by the time you need it, there will be plenty for repairs.

[MikeWalking]

Those Aftermarket extended warranties come in waves.   I'll get 5 or 6 every year in the same month.  All Bogus.   There is a radio ad selling break down/repair insurance, haven't looked into it yet.

I bought the Chrysler extended warranty when I bought my 2004 Grand Cherokee in May of 07 with 36600 on it, an extra $8 a month (or $3?  the warranty and Gap Insurance were $13something together).    Glad I did, Jackalope's Dealer treated me very well when the water pump went.  A water pump I can replace myself and have but with my work schedule, Zero Bus service and a requirement to have my own transport to work  letting the dealer do it and taking a loaner was IT.